Euro vs. Great British Pound (2010-12-28)

By IBT Staff Reporter On 12/28/10 AT 12:14 AM

Morning Report

Finally, the royal pair breached the initial resistance areas of 0.8530-76.4% Fibonacci retracement of XA leg- as seen on the provided four hour chart. Additionally, we see how it stabilized above SMA 50 and therefore, the harmonic probability of resuming the CD leg of a butterfly pattern remains intact. Momentum indicators approached overbought areas and that might cause some kind of a slight bounce before resuming the projected bullishness towards 0.8665 zones.

The trading range for today is among the key support at 0.8445 and key resistance now at 0.8680.

The general trend over short term basis is to the downside, targeting 0.7780 as far as areas of0.8965remain intact.